Vijay Shekhar Sharma, the founding father of Paytm, has reassured staff that regardless of the continuing challenges confronted by the corporate following the Reserve Bank of India’s (RBI) restrictions on Paytm Payment Bank Ltd (PPBL), there will probably be no layoffs.
Also Read: Here’s Why RBI Banned Paytm Payments Bank
The RBI’s limitations embody barring PPBL from offering a spread of important banking companies, resembling accepting deposits, dealing with FASTag transactions, and conducting credit score transactions.
“You are a part of the Paytm family, and there is nothing to worry about. Many banks are helping us,” a report by HT quoted Vijay Shekhar Sharma as saying throughout a digital city corridor with PPBL staff.
“We are not completely sure of things what exactly went wrong. But we will figure out everything soon. We will reach out to the RBI to see what can be done,” he stated.
Paytm will proceed to work as normal
Sharma on Friday additionally stated that the is working and can proceed to work as normal even after February 29. The Paytm founder on social media platform X stated the corporate is dedicated to serving the nation in full compliance.
“To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual,” Sharma stated.
RBI has barred PPBL from accepting deposits or prime-ups in any buyer account, pay as you go devices, wallets, and FASTags, amongst others after February 29, 2024.
OCL holds a 49 per cent stake in PPBL however classifies it as an affiliate of the corporate and never as a subsidiary.
“I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it,” Sharma stated.
The Paytm prime administration throughout an incomes name on Thursday stated they’re engaged on a migration plan for PPBL, pockets, FASTag and so on customers with different banks.
The firm sees the RBI order to have an effect of Rs 300-500 crore on its annual operational revenue as its clients won’t be able so as to add cash to their wallets, FASTag and so on.
Separately, the corporate knowledgeable that its offline retailers community providing and system enterprise like Paytm Soundbox, EDC, QR are usually not impacted by the RBI’s path to its affiliate financial institution. The fintech firm can even proceed onboarding retailers to its platform.
“The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. Other financial services such as loan distribution, insurance distribution and equity broking, are also not in any way related to Paytm’s associate bank and are expected to be unaffected by this direction,” the corporate stated.
Paytm stated that the RBI order additionally doesn’t influence person deposits of their financial savings accounts, wallets, FASTags and NCMC (National Common Mobility Card) accounts, they usually can proceed to make use of the prevailing balances.
RBI has ordered PPBL to settle all pipeline transactions and nodal accounts (in respect of all transactions initiated on or earlier than February 29, 2024) by March 15, 2024 and no additional transactions can be permitted thereafter.
Sharma throughout the name had stated that RBI order is a “big speed bump” and shared that he couldn’t perceive the set off for the transfer and he was not conscious of the precise nuance that triggered the order.
“On behalf of Paytm I can say it is more of a big speed bump but it is something that we believe that with partnership of other banks and capabilities that we have already developed, we will be able to see through in the next few days or quarters as the case will be,” he had stated.
